CM.PR.P : No Conversion To FloatingReset

Canadian Imperial Bank of Commerce has announced:

that, during the conversion notice period which ran from January 1, 2020 to January 16, 2020, 70,730 Non-cumulative Rate Reset Class A Preferred Shares Series 41 (Non-Viability Contingent Capital (NVCC)) of CIBC (the “Series 41 Shares”) were tendered for conversion, on a one-for-one basis, into Non-cumulative Floating Rate Class A Preferred Shares Series 42 (Non-Viability Contingent Capital (NVCC)) of CIBC (the “Series 42 Shares”). As per the conditions set out in the prospectus supplement dated December 8, 2014 relating to the issuance of the Series 41 Shares, since less than 1,000,000 Series 42 Shares would be outstanding on January 31, 2020, holders of Series 41 Shares who tendered their Series 41 Shares for conversion will not be entitled to convert their shares into Series 42 Shares. As a result, Series 42 Shares will not be issued at this time.

On January 31, 2020, CIBC will have 12,000,000 Series 41 Shares issued and outstanding. The Series 41 Shares are currently listed on the Toronto Stock Exchange under the symbol CM.PR.P.

The fixed dividend rate applicable to the Series 41 Shares for the five-year period from and including January 31, 2020 to but excluding January 31, 2025 is 3.909%, payable quarterly as and when declared by the Board of Directors of CIBC.

CM.PR.P is a FixedReset, 3.75%+224, that commenced trading 2014-12-16 after being announced 2014-12-8. In December, notice of extension was published. CM.PR.P will reset at 3.909% effective January 31, 2020. I recommended against conversion. The issue is tracked by HIMIPref™ and is assigned to the FixedReset-Discount subindex.

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